Celsius Network, a crypto lender currently undergoing bankruptcy proceedings, has filed a court document revealing its plan to distribute more than $2 billion in cryptocurrency to its creditors. This groundbreaking announcement sheds light on the modified Chapter 11 plan and the company’s determination to execute the payout strategy effectively.
The court filing, dated February 15, 2024, discloses that the distribution process began on January 31, 2024, which serves as the effective date of the modified Chapter 11 plan. Celsius Network’s decision to distribute cryptocurrency instead of cash is highlighted in the document. Despite the prolonged nature of the Chapter 11 cases, the filing assures that the global distribution process has commenced smoothly, with no significant operational or security issues encountered.
Addressing creditor concerns about the Convenience Class opt-in during the September 2023 voting, the court filing clarifies that all relevant creditors have indeed chosen to opt into the Convenience Class, as recorded by the debtors.
The court filing specifies the distribution of liquid cryptocurrencies to eligible holders. It mentions that eligible holders with PayPal/Venmo as their assigned Distribution Agent should have received an email from Stretto with further instructions. The filing provides detailed statistics regarding the claimed distributions, which include 336,841 BTC and 336,841 ETH distributed to 171,672 creditors, totaling $2 billion in cryptocurrency. Eligible holders with Coinbase as their assigned Distribution Agent were informed via email that funds had been deposited into their Coinbase accounts.
Additionally, the court document offers troubleshooting tips for creditors who encounter difficulties in claiming their liquid cryptocurrency distributions. The debtors and distribution agents are actively addressing and resolving any claim errors experienced by creditors. The filing also mentions the ongoing cash distributions in US Dollars and the debtors’ exploration of wire transfers to address concerns about check deposits in specific jurisdictions. Moreover, it outlines the anticipated communication from Odyssey Transfer and Trust Company regarding the distribution of MiningCo Common Stock.
To ensure the security of creditors, the court filing warns against phishing attempts and provides guidance on how to recognize legitimate contacts from the debtors and their advisors after the effective date.
Overall, Celsius Network’s court filing provides a comprehensive overview of its commitment to creditors, offering transparency into the inner workings of its Chapter 11 plan. The decision to distribute more than $2 billion in cryptocurrency showcases Celsius Network’s dedication to navigating bankruptcy with transparency and efficiency.